Payments Tab

Use this tab to enter and edit the details of an employee's payment method(s). There is no limit on the number of accounts an employee's pay can be dispersed to. However, your financial institution may have limits. Consult your financial institutions before setting up multiple disbursements for an employee.

You can pay employees with:

• Cash - If you select this option, a cash breakdown report may be printed to determine the notes and coinage required to fill the pay packets. The Cash Management are not updated if the payment method is cash. A General Ledger journal is required to update the clearing account.
• Cheque
• Direct Credit - If the direct credit option is selected, you must enter an account number. The banking software your business uses defines the format of the account number.
• AR Offset - The offset is used when employees purchase goods from your business and part of their net pay is used to reduce the amount owing in Accounts Receivable. To use this feature, you must link the employee to a customer on the Options tab of the Employee Maintenance form.

  The Calc Method for the payment line should be either fixed amount, percentage, or reducing. It cannot be a balance method. Invoices for the amounts to be paid are created in Accounts Receivable. During the create payments process, the value to be offset to AR is calculated on the payment line and deducted from AR. The line displays with a transaction type of HR Deduction and the pay number that the money was deducted from updates to the Detail column.

  The AR offset continues to deduct from the employee's pay until the balance on the customer is zero. If the employee makes another purchase on credit from the company, the AR offset starts deducting again.

  If the calculation method is Reducing, you must enter another AR offset line to pay the next AR invoiced. This function pays future invoices, but not invoices that are set as on hold. These types of payment lines can't be setup or changed using the eHR module.

You can use calculation methods like:

• Fixed Amount - An employee can nominate a fixed amount of their net payment to be disbursed to one or a combination of the above methods. The Calc Value column is enabled and must have a value entered if this option is selected.
• Percentage - An employee can nominate a percentage of their net payment to be disbursed to one or a combination of the above methods. The Calc Value column is enabled and must have a value entered if this option is selected.
• Balance - You must establish a balance method for each employee. If the employee is dispersing their payment to more than one pay method, the balance record must be the last record for the employee.
• Reducing - An employee can nominate to have a fixed amount of their net payment to be disbursed to another parties bank account. You can use this to pay government fines and charges.

  Set the Calc Value as the amount to be paid each pay period and the original amount as the total to be paid. Once the amount is fully paid, this line becomes inactive. Each pay period the fixed amount is deducted until the full original amount is paid.

  You can drill down on the Outstanding field and double clicking on this field displays on what pays the amount is paid on. This payment line cannot be adjusted on the pay.

Payment Table

• Pay Method - You should select one of the pay methods, from the dropdown list, to define the method in which the employee is to be paid.
• Calc Method - You should select a calculation method, from the dropdown list, to define how the amount that is to be paid in this method is to be calculated.
• Calc Value - Enter the amount to use by Greentree Desktop with the calculation method for that line.
• Payee Name - Enter the payee name for this payment line. The name entered is copied to the payment line on the Pay Entry form and is used in the printing of cheques and the direct credit schedule and direct credit file creation.
• Bank - Enter the bank's number (as required) for each payment line.
• Branch - Enter the bank's branch number (as required) for each payment line.
• Account Number - Enter the bank account number (as required) for each payment line.
• Ref 1-3 fields - Use these fields to provide additional payment information.
• Original - Enter the original of any amount to be repaid when the line is a reducing line.
• Outstanding - This is a display-only field showing the outstanding amount fro a reducing line.
• Inactive - Select this option to make the payment line inactive.
• Notes - Enter any notes relating to the payment line.

An employee's pay can consist of any number of payment method lines. When an employee's net pay amount cannot fulfil all of the defined pay method lines, Greentree Desktop reduces the amount paid into the last pay method.

 The last line on a employee's payment record should always be a balance line. If an employee only has one payment line, that should be a balance line

Up

Click this button to move the payment line up in the hierarchy.

Down

Click this button to move the payment line down in the hierarchy.

Show Inactive

Click this button to display a list of inactive payment lines. You can reactivate the lines from the displayed form.

• Options Tab